The economic environment is poor, should we develop the LED lighting market segment? Nowadays, there are two different views spreading among managers of various enterprises. Some people think that due to the bad economic situation and the great competition in the industry, enterprises are facing development difficulties, so they have to take the road of segmenting the market and create new ones. The market can allow companies to break out of the predicament and find a way out.

However, some people believe that the economic environment is not good, and the business of the entire industry market is not easy to do. The first to hit the market is often small and medium-sized enterprises that focus on market segments. Declining demand, shrinking market space and unprofitability directly affect the survival of enterprises. It is better to diversify and develop products on a large scale to reduce business risks.

It is undeniable that with the rapid development of China's lighting industry in recent years, especially under the influence of multiple factors such as the rise of e-commerce, the promotion of "Internet +", the entry of domestic economic growth into a new normal, and the internal structural adjustment of the lighting industry, the entire lighting industry has The lighting industry is facing an unprecedented complex situation. In this state, my country's lighting industry still maintains a relatively high growth trend, domestic sales and exports are gratifying, and good results have been achieved. LED lighting is still a sunrise industry.

Entering 2016, lighting companies continue to develop professional subdivision channels such as home improvement companies, supermarket chains, sports lighting, etc., brand concentration, designated procurement rates are increasing, and brand influence is increasing year by year, all of which are lighting brand market operations. important sign. In addition, many LED companies have begun to cooperate with related industries in a wider range of fields, and brand segmentation has become more and more obvious.

Segmentation is more specialized

Taking the market as the guide, conforming to the market demand, establishing the brand effect, and going deep into the market are the breakthrough points that many lighting fields are competing for. It is understood that in 2015, the scale of LED lighting industry reached 450 billion yuan, and the market entered the stage of "intensive cultivation". The competition in the future is no longer just the competition of products, but also the competition of market segments and brands. According to industry insiders, LED outdoor lighting in the industry will become the fastest growing segment of LED lighting in the next three years.

With the continuous development of the lighting industry, many lighting companies also realize that the competition in the industry has developed from product competition and price competition to brand competition. The importance of brand building for lighting companies has formed a consensus in the industry. The market competition is intensified and the product homogeneity is serious. Only by combining their own advantages can companies find and develop suitable market segments to better find a way out. Therefore, the segmented market should be dominated by specialized, powerful, and product-oriented enterprises, who have accurate market positioning, more pursuit of product quality, and more ideas about brand building. In particular, emerging LED lighting companies need to find suitable market segmentation channels based on their own resource advantages, and make more efforts in the segmentation field.

If you can't be the No. 1 brand in the market, then create a new market segment to be No. 1. The law that market segments are king has long been successfully demonstrated by many companies. Under the new normal of LED, the fierce market battle in the future will definitely be more tragic, and the stronger will be stronger, and the market share will be further gathered by the giants.

For small and medium-sized LED enterprises, if they cannot adopt some subversive business models, then focusing on a certain segment or customer group is the best choice to obtain a living space. Especially when the products are highly homogenized, instead of struggling in the red sea of the market, enterprises might as well create a new market segment, or concentrate on creating an ultimate single product, start a brand, and strive to become the No. 1 brand.

"Only with a clear positioning, can you reap the benefits by digging three feet in the market segment." An industry expert said that the practice of greed for perfection and lack of clear positioning is difficult to reflect the core competitive advantages of enterprises, and consumers are choosing is also very difficult to distinguish.